The Warehouse Group FY23 Third Quarter Sales Update

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To: NZX Limited
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Auckland, 12 May 2023

The Warehouse Group – FY23 Q3 trading update

The Warehouse Group Limited (“the Group”) has today provided a trading update for the 13 weeks
ending 30 April 2023 (“FY23 Q3”).

Total Group sales were $801.3 million in FY23 Q3, an increase of 3.8% on the same period in FY22
1
.
• The Warehouse sales were $444.1 million, up 10.5% compared to the same period last year.
• Warehouse Stationery sales were $65.7 million, down 2.5% compared to the same period last
year.
• Noel Leeming sales were $247.8 million, down 3.4% compared to the same period last year.
• Torpedo7 sales were $35.4 million, down 3.0% compared to the same period last year.

The Warehouse Group ended the third quarter showing some improvements in its trading
performance, despite a challenging consumer environment.

The third quarter brought year to date sales to $2.6 billion, up 4.5% compared to the prior period year.

Group gross profit was $272.2 million in FY23 Q3, down 0.9% on prior period, resulting in $865.6
million gross profit year to date, down 1.0% compared to prior period year to date. Group gross profit
margin was 34.0% in FY23 Q3, down 160 basis points compared to FY22 Q3, however an improvement
on the gross profit margin of 32.7% reported in the half year.

“We have reprioritised our focus on trading in response to the current economic conditions. Our
attention remains on managing costs and delivering gross profit across the Group,” said Group Chief
Executive Officer, Nick Grayston.

The Warehouse delivered a strong quarter with sales growth of 10.5%, resulting in year to date sales
of $1.5 billion, up 12.4% compared to prior period year to date. The Warehouse gross profit increased
5.0% to $169.6 million in the quarter, with gross profit growth year to date of 12.4% to $539.1 million.
The Warehouse gross profit margin was down 200 basis points compared to FY22 Q3, an improvement
on the 370 basis point decline reported at half year.

Torpedo7 sales and margins were particularly impacted by a continued significant weakness in the
bike category, with total sales down 3.0% and gross profit margin down 440 basis points compared to
FY22 Q3. This compares to a decline of 1.1% in sales and decline of 440 basis point in gross profit
margin at the half year.

Both Noel Leeming and Warehouse Stationery gross profit margins were similar in FY23 Q3 to those
reported in the half year.

“We are beginning to see improvements in our gross profit margin at Group level following the actions
we have taken. We will continue to be extremely vigilant with both operating and capital
expenditure,” said Mr Grayston.

1
Prior period refers to the 13 weeks to 1 May 2022.

The economic outlook continues to be challenging and New Zealanders looking for great value has
driven continued sales growth at The Warehouse this quarter. Other Group brands remain challenged
as customers continue to control disposable income while cost of living remains elevated and interest
rates continue to rise.

“We are pleased to confirm the opening of our newest stores in Warkworth later this month. The
Warkworth location, which will open on 25 May, will feature a new The Warehouse, Warehouse
Stationery store-within-a-store, and a Noel Leeming store. This will replace The Warehouse Snells
Beach and the existing Warkworth Noel Leeming and Warehouse Stationery stores. The premises will
be one of New Zealand’s most energy efficient retail buildings, with 252 solar panels on the roof, smart
technology to reduce energy consumption, and the use of engineered wood instead of steel for the
structure, which produces 90% less carbon than conventional steel framing,” said Mr Grayston.


ENDS

Contact details regarding this announcement:


Investors and Analysts: Jonathan Oram, Chief Financial Officer
To be contacted via Rachel King +64 9 488 3285 or +64 21674565

Media: Jordan Schuler, Corporate Affairs Partner +64 21 143 6930
Media.enquiries@thewarehousegroup.co.nz

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Quarterly Sales
Reporting Period 39 weeks to 30 April 2023
Previous Reporting Period (2022) 39 weeks to 1 May 2022
Previous Reporting Period (2021) 39 weeks to 2 May 2021
Quarterly Retail Sales information:
SalesSalesSales
(1 August 2022 to 29 January 2023)
202320222021
($ Million)($ Million)($ Million)
The Warehouse 1,013.7 895.4 967.3 + 13.2 % + 4.8 %
Warehouse Stationery124.1 122.0 136.6 + 1.7 % - 9.2 %
Noel Leeming556.7 582.7 593.2 - 4.5 % - 6.1 %
Torpedo796.4 97.5 84.9 - 1.1 % + 13.6 %
Total Group
1
1,813.2 1,730.0 1,808.3 + 4.8 % + 0.3 %
SalesSalesSales
(30 January 2023 to 30 April 2023)
202320222021
($ Million)($ Million)($ Million)
The Warehouse 444.1 401.9 409.9 + 10.5 % + 8.3 %
Warehouse Stationery65.7 67.4 71.8 - 2.5 % - 8.5 %
Noel Leeming247.8 256.5 263.0 - 3.4 % - 5.8 %
Torpedo735.4 36.5 35.4 - 3.0 % + 0.1 %
Total Group
1
801.3 771.6 791.2 + 3.8 % + 1.3 %
SalesSalesSales
(1 August 2022 to 30 April 2023)
202320222021
($ Million)($ Million)($ Million)
The Warehouse 1,457.8 1,297.3 1,377.2 + 12.4 % + 5.9 %
Warehouse Stationery189.8 189.4 208.4 + 0.2 % - 8.9 %
Noel Leeming804.6 839.2 856.2 - 4.1 % - 6.0 %
Torpedo7131.8 134.0 120.2 - 1.6 % + 9.7 %
Total Group
1
2,614.5 2,501.6 2,599.5 + 4.5 % + 0.6 %
Store Numbers
20232022202320222023202220232022
Start Quarter 3889068 71 67 70 25 22
End Quarter 3878967 69 66 70 25 23
20232022202320222023202220232022
Start Quarter 3473,359 486,051 83,064 85,541 51,285 62,867 33,179 28,319
End Quarter 3468,689 481,518 82,619 84,516 50,660 61,245 33,179 29,900
- - 1 -
- - 1 -
- - 1 -
- - - -
Note:
The Warehouse Group Limited
First half sales
Change in
sales
vs 2022
Change in
sales
vs 2021
Third quarter sales
Change in
sales
vs 2022
Change in
sales
vs 2021
The WarehouseNoel LeemingWarehouse StationeryTorpedo7
New
store
Replacement
store
Store
closure
Store
extension/
reduction
Store footprint
(Square Metres)
The WarehouseNoel LeemingWarehouse StationeryTorpedo7
The Warehouse
Warehouse Stationery
Noel Leeming
Torpedo7
1) Total Group sales includes TheMarket segment, eliminations and other Group operations in addition to the 4 main retail operations detailed above.
Year to date sales
Change in
sales
vs 2022
Change in
sales
vs 2021
Store changes during the quarter